11.07.202321:01:00UTC+00Dollar Slips Against Major Counterparts

The U.S. dollar lost ground against its major counterparts on Tuesday, weighed down by comments from some Federal Reserve officials indicating the central bank is nearing the end of the tightening cycle.

Several Fed officials said on Monday that interest rates need to remain higher to achieve the 2% inflation target, but the end of the current monetary policy tightening cycle is getting close.

Traders looked ahead to release of the report on consumer price inflation on Wednesday.

Consumer prices are expected to increase by 0.3% in June after inching up by 0.1% in May, while core consumer prices, which exclude food and energy prices, are expected to rise by 0.3% in June after climbing by 0.4% in May.

The annual rate of growth by consumer prices is expected to slow to 3.1% June from 4% in May and the annual rate of core consumer price growth is expected to slip to 5% in June from 5.3% in May.

Ahead of the inflation data, CME Group's FedWatch Tool is indicating a 92.4% chance of another quarter point rate hike at the next Fed meeting later this month.

The dollar index fell to 101.67 in the European session, and despite recovering to 101.97 by mid morning, dropped to 101.68 later, netting a loss of about 0.29%.

Against the Euro, the dollar is slightly weak at 1.1006, after having firmed to 1.0978 earlier in the day.

The dollar has weakened to 1.2929 against Pound Sterling from 1.2860. Against the Japanese currency, the dollar is down at 140.36 yen.

The dollar is down against the Aussie at 0.6687. Against Swiss franc, the dollar is weak, fetching CHF 0.8797 a unit, compared with CHF 0.8854 on Monday.

The dollar has weakened to C$1.3235 against the Loonie as oil prices rose sharply, and traders looked ahead to the Bank of Canada's interest rate decision.